A leverage-based model of speculative bubbles
A leverage-based model of speculative bubbles
Rate this book:
About This Book
"This paper develops an equilibrium model of speculative bubbles that can be used to explore the role of various policies in either giving rise to or eliminating the possibility of asset bubbles, e.g. restricting the use of certain types of loan contracts, imposing down- payment restrictions, and changing inter-bank rates. As in previous work by Allen and Gorton (1993) and Allen and Gale (2000), a bubble arises in the model because traders are assumed to purchase assets with borrowed funds. My model adds to this literature by allowing creditors and traders to enter into a more general class of contracts, as well as by allowing speculators to trade strategically"--Federal Reserve Bank of Chicago web site.
Buy This Book
As an Amazon Associate and Bookshop.org affiliate, BookOrb earns from qualifying purchases.
Write a Review
Sign in to write a review.
More by Gadi Barlevy
Asset Bubbles and Macroeconomi
Asset Bubbles and Macroeconomic Policy
Characterizations in a random
Characterizations in a random record model with a non-identically distributed initial record
Earnings inequality and the bu
Earnings inequality and the business cycle
Estimating models of on-the-jo
Estimating models of on-the-job search using record statistics
Identification of search model
Identification of search models with initial condition problems
Information acquisition in fin
Information acquisition in financial markets